TThe European Central Bank kept its monetary policy unchanged after the meeting of its governing council on Thursday - Photo by ECB Office

JAKARTA (TheInsiderStories) – Good Morning! The European Central Bank kept its monetary policy unchanged after the meeting of its governing council on Thursday. The deposit rate stayed at -0.5 percent, its main refinancing operations rate at zero percent, and the marginal lending facility rate at 0.25 percent.

The president, Christine Lagarde, said the latest wave of the pandemic had probably caused eurozone GDP to fall again in the last quarter of 2020. The ECB also expanded its emergency bond-buying program to EUR1.85 trillion (US$2.25 billion) until this year in response to a resurgence of coronavirus infections in the eurozone that is expected to drag the bloc into a double-dip recession this winter.

From the United States (US), the top doctor, Anthony Fauci, said the country will re-engage with a World Health Organization plan aimed a speeding delivery of COVID-19 vaccines around the world. While, President Joe Bidden Biden has signed series of orders related to the pandemic.

The 10 orders will establish a the coronavirus testing board to ramp up testing, address supply shortfalls, establish protocols for international travelers and direct resources to hard-hit minority communities. Biden has proposed a $1.9 trillion COVID-19 package that would enhance jobless benefits and provide direct cash payments to households to alleviate the financial pain from the virus.

He also will get an immediate reality check on the state of the economy with weekly jobless claims data releases today. The economists expect the initial jobless claims of 910,000 and continuing claims of 5.40 million.

From Europe, British’ Prime Minister, Boris Johnson sent a signal that the COVID-19 lockdown could last into summer. The latest data showed 1,290 people died in the last 24 hours, taking the total to 95,829, the highest death toll in the block.

Yesterday, Indonesian Rupiah strengthened 0.25 percent to 14,000 per US Dollar but the Jakarta Composite Index (JCI) weakened 0.25 percent to 6,413.89 compared to the previous day. The analysts rated that the completion of the inauguration of Biden and the results of the board of governors of Bank Indonesia which set the interest rate at 3.75 percent has give a good sentiment in the money market.

For today, the movements of both instruments will be influenced by the extension of the Public Activity Restriction by the government until Feb. 8, 2021. In addition, the market is still digesting the central bank’ decision to maintain the benchmark rate.

However, the observes by the ECB that worried about the strengthening of the Euro which has the potential to hinder the rate of inflation will give an impact on the weakening of the local currency. With this information, the Rupiah is expected to move in the range of 13,910 – 14,100 per US dollar and JCI between 6,238 – 6,460.

Stocks to be watch for today are PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Medco Energi Internasional Tbk (IDX: MEDC), PT Mayora Indah Tbk (IDX: MYOR), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP).

US$1: EUR0.82

May you have a profitable Day!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia